[nicko09]

Many thanks John.

This was from the FM exam i sat this past Friday (5th March 2021)

[nicko09]

It’s just that because it said WACC 13 percent so when the WACC was calculated the 6% would have been factored in. That was my conclusion anyway

[nicko09]

Investment appraisal section c question – was it correct to use the WACC at 13% to discount?

[nicko09]

I must of missed the PV requirement in the question, thanks for confirming.

[nicko09]

Section b was my worst section.

Did anybody get the section c 5 mark additional working capital question (1,000,000 extra)? I wasn’t sure whether to discount as it did not mention.

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